Former Oldbury Caparo workers to get more than £250,000

A total of 65 former employees from the old Caparo Precision Tubes plant in Oldbury have been awarded a payout.

An employment tribunal ruled yesterday that the steel firm must shell out 90 days redundancy pay for the 75 workers.

When the steel products arm of the company folded in 2015 employees were ushered into a meeting.

Half of the staff were told at random they would keep their jobs – the other half were told they were sacked and had an hour to leave the premises.

But today a tribunal ruled the sacked workers should be paid 90 days back wages – which could amount to £250,000 between the 65 former employees.

All of the sacked staff were represented by the GMB union.

Russell Farrington, GMB Organiser, said: “This is a massive victory for GMB’s Caparo members.

“Nothing can make up for the two years spent in limbo, or the disgraceful way they were sacked. At least they can now get on with their lives.

"The ruling once again underlines the importance of joining a trade union like GMB.“

This is the second major ruling in as many days against Caparo, after more than 120 workers were awarded payouts after Caparo Atlas Fastenings Ltd closed in 2015.

All 122 workers had been represented by the Unite union, which has fought the case for more than two years.

An employment tribunal ruled the workers should get eight weeks pay compensation, an average of £2,500. This is because there should have been a 45 day consultation period from the company with staff and their union representatives, which never happened.

This is expected to cost Caparo around £305,000, on top of the £250,000 payouts for the Oldbury plant.

Caroline Crolley from Walsall's Unite branch said: "We have fought for two years on behalf of our members and been to various hearings, but now finally a tribunal has ruled in our favour.

"It has been a long hard battle but we are absolutely delighted with the result."